Now it can be taken for granted that the statements of Tesla CEO Elon Musk have caused manipulation or speculation in the cryptocurrency market. However, many experts believe that this situation will end soon.
Elon Musk and his impact on cryptocurrency
Elon Musk, especially through his Twitter posts in 2020 and 2021, is having an upward or downward impact on cryptocurrencies. For example, the Bitcoin and heartbroken exchange that Musk did on Twitter yesterday had a negative impact on all cryptocurrencies, especially the leading cryptocurrency.
In fact, after the May drop, the cryptocurrencies started June very well and Bitcoin climbed to the $ 40,000 cap. However, Musk’s statements caused pressure from sellers, and negative trends observed in the market again.
According to experts, with the help of such tweets, Musk is playing for a fall. Perhaps he invested in bitcoin, and is now trying to steer the market in the direction he wants. If he invested directly, then it is profitable for him that the market grows, and if he plays for a decrease in value, then, on the contrary, it is profitable for him that Bitcoin falls.
Recall that Musk is not the first time influencing the cost of cryptocurrencies.
In mid-May, he announced that his company intends to sell the previously purchased Bitcoins, after which the exchange rate fell by 10%. Prior to that, the rate dropped even further after Musk announced that Tesla would not sell its cars for Bitcoin.
Earlier, Elon Musk deleted his biography on Twitter and wrote only Bitcoins. At that time, the price of BTC rose by $ 6,000 in a very short time. Additionally, Musk is one of the names behind Dogecoin’s huge rise in 2021. Dogecoin (DOGE), which had no purpose and was only a joke, increased by about 12,000 in 2021, influenced by both Musk and some other popular names. Note that after this increase, the listing of Dogecoin on Coinbase Pro caused controversy.
Therefore, recently a situation developed on cryptocurrencies called the “Musk effect”. So how long will this situation last?
When will the “Musk effect” end?
According to analysts, Musk’s erratic attitude towards Bitcoin has damaged his reputation on social media. According to the statements made, the negative reports about Musk outnumbered the positive ones.
Many famous names now believe that the Mask effect is gone. Although the announcements made yesterday had an impact on the market again, this time the big impact that we saw earlier didn’t happen. At this stage, it can be shown as an example that Bitcoin has suffered much more than previous statements in 2017. And that these statements have now lost their validity.
In addition, many popular analysts believe that these statements by Musk will instantly create an effect on the market. And then the levels predicted in technical analysis will be checked. Therefore, analysts advise investors to stay calm and watch technical analysis.